Whether the provisions of Article 32-2(1) of the Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981) on the constructive gift referred to in Article 32-2(1) apply to a simple title trust (affirmative)

Article 32-2 (1) of the Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981) of the legal fiction of donation is applicable to the case of a simple title trust between the actual owner and the nominal owner.

Article 32-2(1) of the Inheritance Tax Act (amended by Act No. 3474, Dec. 31, 1981)

Supreme Court Decision 84Nu748 Decided March 26, 1985 86Nu290 Decided October 14, 1986

Plaintiff

Head of Yeongdeungpo-do Tax Office

Daegu High Court Decision 83Gu135 delivered on April 17, 1984

The judgment below is reversed, and the case is remanded to the Daegu High Court.

According to the reasoning of the judgment below, prior to the judgment of the court below, the court below held that the registration of transfer of ownership made on January 8, 1982 in the name of the plaintiff in the name of the non-party was merely a title trust to the plaintiff by agreement with the plaintiff, and that the above non-party cannot be deemed to have donated the above real estate to the plaintiff, and that the tax disposition of this case was unlawful.

However, Article 32-2(1) of the Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981) provides that in case where the actual owner and the nominal owner are different with respect to property which requires a registration, etc. for the transfer or exercise of rights, the actual owner shall be deemed to have donated to the nominal owner on the date when the registration, etc. is made to the nominal owner notwithstanding Article 14 of the Framework Act on National Taxes. The provision on deemed donation applies to simple title trust between the actual owner and the nominal owner. Thus, the court below acknowledged that the above real estate was a title trust between the actual owner and the nominal owner, and held that the above real estate was a title trust to the Plaintiff, and thus, it cannot be deemed that the defendant's taxation was unlawful. The judgment of the court

Therefore, the judgment of the court below is reversed, and the case is remanded to the court below for a new trial and determination. It is so decided as per Disposition by the assent of all participating judges.

Justices Park Jong-dong (Presiding Justice)